Aon Airline Insurance Market Outlook 2009

After five years of competitive market conditions, airlines around the world saw their lead hull and liability premium increase on average by 7% in 2008, according to Aon's Airline Insurance Market Outlook 2009. Following the 11% decline in 2007, this means that the market swung by 18% in the last two years and the tougher conditions are likely to continue in 2009.

Total lead hull and liability premium rose from US$1.51bn in 2007 to US$1.60bn in 2008, while insurers are estimated to have paid out US$1.45bn in claims. Many underwriters are likely to have made a loss in 2008 however, as a result of a variety of factors including fixed and reinsurance costs, and will be under further pressure in 2009 as capital providers scrutinise their current level of investment.